ANZ’S HEAD OF AUSTRALIAN ECONOMICS, DAVID PLANK, COMMENTED:
“Encouragingly, confidence rose for the third straight week as consumers were more optimistic about near term financial and economic conditions. On the whole, economic conditions have risen from their recent low and now sit above their long term average (111.8 vs 107.9).
Expectations of personal tax cuts in the Budget next week are likely lifting sentiment to some extent. Some de-escalation in geopolitical tensions between North Korea and South Korea late last week may also have impacted.
Our estimates suggest that the tax cut, if implemented, would translate to a modest increase in disposable income for low-and-middle income earners. Even so, this should provide some support to household spending, particularly since wage growth is expected to improve only gradually.”
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